EPS Minimum Pension: Panel Seeks Third-Party Evaluation
Why in the news
A House panel pressed the Labour Ministry to review the Employee Pension Scheme and consider raising its very low minimum pension.
Key facts
- Panel: Standing Committee on Labour, led by BJP MP Basavaraj Bommai.
- Target: complete the third-party evaluation by December 2025.
- Minimum pension today: ₹1,000 per month; the Centre funds any gap for pensions below this level.
- EPS was introduced in November 1995 and run by the EPFO.
Recommendations
- Complete the evaluation within a definite timeframe to make the scheme more effective.
- Urgently consider raising the minimum pension given the sharp rise in living costs.
Concerns
- Labour economist KR Shyam Sundar noted most subscribers are low-paid, so they can contribute little and end up with small pensions.
- Stagnant wages and inflation have eroded the corpus built during working years.
Significance
The review should reveal the scheme’s effectiveness and sustainability and could lead to reforms for pensioners.
Exam angle
- Administrator: EPFO.
- Launched: November 1995.
- Current minimum pension: ₹1,000 a month.